Académique Documents
Professionnel Documents
Culture Documents
ELECTRONIC COMMERCE
Contents
1. MOTIVATION AND LEARNING GOALS
2. LEARNING UNIT 1
What is E-Commerce?
3. LEARNING UNIT 2
Electronic Data Interchange
4. LEARNING UNIT 3
Security of E-Commerce
5. LEARNING UNIT 4
Payment in E-Commerce
6. REFERENCES
ELECTRONIC COMMERCE
Motivation
With the emergence of internet and the world wide web new methods of
carrying out business transactions using the world wide web began to be
explored. Electronic Commerce emerged as a very important application of
the world wide web. Today it is difficult to find an isolated computer.
Computers in an organization are interconnected to form intranets and
Intranets of the cooperating organizations are interconnected to form
extranet. It is cheaper and faster to carry out business transactions within an
organization and among organizations electronically using the network
connection. Thus it is important to understand how business transactions are
carried out electronically reliably and securely. When designing information
systems it is essential to understand the emerging web based transactions. A
number of organizations are exploring how to carry out all day-to-day
operations electronically using the intranet in a so-called paperless system. It
is thus important for a student to understand how to design such systems.
Learning Goals
At the end of this module you will know:
The basics of Electronic Commerce abbreviated as e-commerce
The advantages and disadvantages of e-commerce
Architecture of e-commerce systems
Electronic Data Interchange in e-commerce
The need for security in e-commerce transactions and how to ensure it
How Electronic payment schemes work in e-commerce.
LEARNING UNIT 1
What is E-Commerce?
DEFINITION
Sharing business information, maintaining business relationships and
conducting business transactions using computers connected to a
telecommunication network is called E-Commerce
CLASSIFICATION
CLASSIFIED AS : BUSINESS TO BUSINESS (B2B)
BUSINESS TO CUSTOMER (B2C)
CUSTOMER TO CUSTOMER (C2C)
E-commerce Applications-example
RETAIL STORES - Books, Music
AUCTION SITES
COOPERATING BUSINESSES Placing orders, paying invoices etc.
ELECTRONIC BANKING
BOOKING TICKETS - TRAINS, CINEMA, AIRLINES
ELECTRONIC PUBLISHING
FILLING TAX RETURNS WITH GOVERNMENT DEPT.
Business To Business E-commerce
Local LAN of business would normally follow TCP/IP protocol of internet
and is called corporate intranet
Purchase order entered by business1 in its PC and electronically dispatched
to vendor (by e-mail)
Vendor acknowledges electronically the order
Vendor dispatches goods (physically) and delivery note electronically to
business1
Business 1 can compare delivery note against order -both are in computer
readable form
Discrepancy note(if any) can be immediately sent to the vendor(business 2)
Business 1 can carry out all local transactions using its LAN
Local transactions are inventory update by stores - advice to accounts to
pay for goods taken into stock
Accounts can make payment electronically to Vendor
PSTN or
LEASED
LINE
Public switched telephone network
LAN of buisness1 LAN of buisness2
Vendor
Local computers
Purchase store accounts
Local computers
Implementing B2B E-commerce-requirements
1.Agreed on formats for Purchase order, delivery note, payment order etc.
Standard known as EDI (Electronic Data Interchange Standard) is used to
send documents electronically.
2.Each Business must have corporate intranet and the two nets are connected
by PSTN or leased line.
3.Transactions must be secure - particularly if PSTN is used.
4.Secure electronic payment methods are required.
Steps In B2C E-commerce
1. Customer uses a browser and locates vendor or he has vendor's web
page address
2. Sees Vendor's web page listing of items available, prices etc
3. Customer selects item and places order. Order may include credit
card details or may be cash on delivery
4. Vendor checks with credit card company customers credit
5. Credit card company OKs transaction
6. Vendor acknowledges Customer